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Markets are falling because going over the cliff creates uncertainty. The uncertainty revolves around not just not paying the interest but also other factors such as a downgrade by the ratings agencies and the impact on growth. Treasuries are the lynchpin of the global financial system. Anything that threatens the sanctity of Treasuries damages the financial markets and the economy. Your contention that the market has already discounted the uncertainty is sheer nonsense.
I never said that not raising the debt ceiling means a default on Treasury securities. They will get a deal done because of the uncertainty it creates in financial markets. Markets crashing down c2011 Aug 5 hits the real economy.
Markets are falling because going over the cliff creates uncertainty. The uncertainty revolves around not just not paying the interest but also other factors such as a downgrade by the ratings agencies and the impact on growth. Treasuries are the lynchpin of the global financial system. Anything that threatens the sanctity of Treasuries damages the financial markets and the economy. Your contention that the market has already discounted the uncertainty is sheer nonsense.
i'm thinking a $17 trillion debt and adding a glorified entitlement program on top of it that will consume 1/6th the GDP has to impact the sanctity of the treasury
Over time, if they aren't paid for, they will.
But it's not just spending. It's tax revenues also. Germany has higher spending AND higher taxes and a higher bond rating than the US.
That doesn't mean we have to raise taxes. That's a question of what type of society we want. But as it pertains to our financial soundness, conservatives NEVER focus on raising taxes, which would help with the deficit. (Like, in fairness, liberals never focus on cutting spending.)
But it's not just spending. It's tax revenues also. Germany has higher spending AND higher taxes and a higher bond rating than the US.
That doesn't mean we have to raise taxes. That's a question of what type of society we want. But as it pertains to our financial soundness, conservatives NEVER focus on raising taxes, which would help with the deficit. (Like, in fairness, liberals never focus on cutting spending.)
Markets are falling because going over the cliff creates uncertainty. The uncertainty revolves around not just not paying the interest but also other factors such as a downgrade by the ratings agencies and the impact on growth. Treasuries are the lynchpin of the global financial system. Anything that threatens the sanctity of Treasuries damages the financial markets and the economy. Your contention that the market has already discounted the uncertainty is sheer nonsense.
All those catastrophic possibilities, and the market downturn isn't even a correction yet. Which is why I said you don't know asset valuation. You also said the market would react after the event.
I've known a lot of mediocrities in The City who had impressive titles and job descriptions and didn't have a clue what was going on around them.
Markets are falling because going over the cliff creates uncertainty. The uncertainty revolves around not just not paying the interest but also other factors such as a downgrade by the ratings agencies and the impact on growth. Treasuries are the lynchpin of the global financial system. Anything that threatens the sanctity of Treasuries damages the financial markets and the economy. Your contention that the market has already discounted the uncertainty is sheer nonsense.
All those catastrophic possibilities, and the market downturn isn't even a correction yet. Which is why I said you don't know asset valuation. You also said the market would react after the event.
I've known a lot of mediocrities in The City who had impressive titles and job descriptions and didn't have a clue what was going on around them.
Yet you're no longer there and I am. Imagine that. My Sharpe is 9 over the past two years. Perhaps if you had any idea about how markets work rather than make really cool spreadsheets, you still would be.
If someone calls you and threatens to ruin your credit, if you don't do what they want you to do, they can be arrested for extortion.
So can the FBI arrest House Republicans for extortion?
The arguement going on here about whether or not the government "defaults" is not even the issue at stake. The issue is the public confidence as to whether otr not the government will meet it's obligations. Money is not real. Money is simply imaginary. When the public, and the world, lose faith in the imaginary money, the entire house of cards collapses. The entire world economy can be looked upon as the residents and depositors at Jimmy Stewart's bank in "It's a Wonderful Life", and the USA is nothing more than the Bedford Falls Savings and Loan. If a "run" starts, because of this brinkmanship, we have already gone off the cliff, default, or not.
25 people have voted yes ( default ) in this poll.
Fucking crazy people.
25 people have voted yes ( default ) in this poll.
Fucking crazy people.
25 people have voted yes ( default ) in this poll.
Fucking crazy people.
I didn't vote because the question is a lie......
25 people have voted yes ( default ) in this poll.
Fucking crazy people.
What's fucking crazy is going down the insane big government regulation and spending path we are on. That is what has to stop.
I agree with the guy who said this.25 people have voted yes ( default ) in this poll.
Fucking crazy people.
I didn't vote because the question is a lie......
Let me guess.
Failure to raise the debt ceiling is....in your opinion.....not going to lead to default. Right?
Lunatic idiot.
The arguement going on here about whether or not the government "defaults" is not even the issue at stake. The issue is the public confidence as to whether otr not the government will meet it's obligations. Money is not real. Money is simply imaginary. When the public, and the world, lose faith in the imaginary money, the entire house of cards collapses. The entire world economy can be looked upon as the residents and depositors at Jimmy Stewart's bank in "It's a Wonderful Life", and the USA is nothing more than the Bedford Falls Savings and Loan. If a "run" starts, because of this brinkmanship, we have already gone off the cliff, default, or not.
Why dont you go tell the power company that money isnt real and your not going to pay LOL
25 people have voted yes ( default ) in this poll.
Fucking crazy people.
What's fucking crazy is going down the insane big government regulation and spending path we are on. That is what has to stop.
We do not have a debt crisis. Change the channel.
Regulations are an other topic. One that sure gets nutters insane....but an other topic.
You voted yes? You think we should default? Is that right?
The arguement going on here about whether or not the government "defaults" is not even the issue at stake. The issue is the public confidence as to whether otr not the government will meet it's obligations. Money is not real. Money is simply imaginary. When the public, and the world, lose faith in the imaginary money, the entire house of cards collapses. The entire world economy can be looked upon as the residents and depositors at Jimmy Stewart's bank in "It's a Wonderful Life", and the USA is nothing more than the Bedford Falls Savings and Loan. If a "run" starts, because of this brinkmanship, we have already gone off the cliff, default, or not.
Why dont you go tell the power company that money isnt real and your not going to pay LOL
Money is real because the power company & their workers & suppliers all believe it has real value. If that faith & credit is damaged so is the value of the money & economy.
i'm thinking a $17 trillion debt and adding a glorified entitlement program on top of it that will consume 1/6th the GDP has to impact the sanctity of the treasury
Over time, if they aren't paid for, they will.
But it's not just spending. It's tax revenues also. Germany has higher spending AND higher taxes and a higher bond rating than the US.
That doesn't mean we have to raise taxes. That's a question of what type of society we want. But as it pertains to our financial soundness, conservatives NEVER focus on raising taxes, which would help with the deficit. (Like, in fairness, liberals never focus on cutting spending.)
how much more can we be taxed? the farce is obama has not raised taxes. well at face value, he hasn't. but in reality he has cut services and cut funding federal funding to states. which in turn causes states to cut services and raise taxes. then we have introduced a host of other added taxes to goods and services purchased. add it up, our income is already taxed in the high 60% range.
